Why do you need a mortgage renewal?

Let’s think of a scenario, you’re the proud owner of a home and have been paying your mortgage on time every month since your purchase. You were on the way to clear your mortgage on time, however, somewhere down the lane you faced a financial crisis and couldn’t pay the mortgage amount for a couple of months. This delay meant that you won’t be able to clear your mortgage on time. What do you do now? You can pay the penalty amount, but that would cost you more. And if you don’t have the funds to do that, you might be looking into some mortgage legal issues. However, to avoid this your mortgage broker will offer you a renewal option and you might want to consider it. Not only will it give you some extra time to pay off your mortgage but help you stabilize your finances as well. Here are some more reasons why mortgage renewal is a good option.

Reasons to consider mortgage renewal:

A lower interest rate:
With a mortgage renewal, you can expect a lower interest rate on the remaining mortgage amount resulting in a lower repayment option. You will have the option to better manage your finances.

Leverage your equity:
With mortgage renewal, you have the option to tap into your equity as well. By offering you equity as collateral you can apply for some extra cash that you can use in anything you want.

Renegotiate your contract terms:
Before signing on the dotted lines for your mortgage renewal contract, you might want to have a second look at the terms and conditions of the contract. If you want to change something, now is the perfect time to do so. Speak with your mortgage lender about the changes and get them done.

Switch to another mortgage lender:
This is another viable option as well. If you’re not happy with your present mortgage lender, explore the market for another one. You can enlist the services of a mortgage broker to help you with this option. They always have a well-connected network of mortgage brokers who can help you with your financial needs.

Examine your financial goals:
Check which option would be the most viable for you. Whether you want to pay back your mortgage faster? Whether you will move in the future? Has your income been reduced? Carefully consider all the critical factors that may affect your finances and then make a sound decision on your mortgage renewal. In a way, mortgage renewal can help assist you to assess your present financial circumstances.

You can always know more about why mortgage renewals can be helpful by getting in touch with your local mortgage broker. We hope this post has given you a better understanding of this topic, thanks, and see you soon. Contact GNE Mortgage for more information